Memecoin on-chain trading must-know: A complete analysis of community terminology

In the world of trading Memecoin on-chain, traders have gradually developed a unique set of terminology. These terms are not only a common language among traders but also key for newcomers to understand market dynamics. This article will provide you with a detailed explanation of these commonly used terms, helping you better grasp the pulse of Memecoin trading.

Capital Strength Division

Traders are usually categorized into the following types based on the scale of their held assets:

• Asset scale of less than 1 million USD: novice traders
• Asset size between 1 million to 5 million USD: Intermediate traders
• Asset size between 5 million to 10 million USD: Advanced trader
• Asset scale exceeds 10 million USD: top traders

Transaction Behavior Analysis

• Leader: Refers to important address holders whose trading activities are closely watched by many investors, and whose buy and sell operations can significantly influence market trends.
• Sell-off: Selling the tokens held, which usually exerts downward pressure on market prices.
• Set in stone: Describes an event or outcome that is certain and indisputable.
• Contract Address: Refers to the smart contract address of the token, which is usually used to verify the authenticity of the token and to view related transaction information.
• Watching the Market: The behavior of closely monitoring on-chain information for extended periods to identify potential investment opportunities.

Trader Types

• On-chain Expert: A seasoned player who excels in on-chain trading, operates with precision, and achieves considerable profits.
• Frequent Losers: Participants who frequently incur losses and have poor trading performance.

Market Phenomena and Strategy Interpretation

• Buy Crash: The phenomenon where the price immediately drops after purchase, often used as self-deprecation or teasing.
• Quick In and Out: A short-term trading strategy that involves buying when the token's market value is extremely low and quickly selling to realize profits. This strategy carries high risks and may lead to losses for some participants.
• High-Risk Zone: Describes the high-risk characteristics of Memecoin on-chain trading, akin to being on the front lines of a war.
• On-chain reconnaissance: Continuously monitor newly issued tokens to find the ideal entry point.
• Value Discovery: In the Memecoin market, sentiment and narratives often matter more than actual applications. The process of finding and creating this virtual value is known as "value discovery".

Understanding these terms will not only help you better integrate into the Memecoin trading community but also enhance your sensitivity to market dynamics. However, always keep in mind that the Memecoin market is extremely risky, and investment should be approached with caution.